Finding 952194 (2023-008)

Reporting for Head Start Federal program: ALN 93.600 Head Start Federal agency: U.S. Department of Health and Human Services Criteria: When the finance staff completes a SF-425, Federal Financial Report to request grant funds, it must verify the accuracy and completeness of the reports and that they agree with the underlying accounting records. Condition: SF-425, Federal Financial Reports submitted did not agree to the underlying accounting records. Cause: Controls to ensure annual financial reports are reconciled to the underlying accounting data were not followed. Effect: The District requested and received $353,292 more in reimbursements than earned. This amount was reclassified from revenue to unearned revenue. Questioned costs: The District requested and received $353,292 more in reimbursements than earned. This was computed by comparing total allowed expenses to reimbursements received. Context: Testing was performed over the total population of reimbursements. Statistical sampling was not used. Recommendation: Management should utilize existing control procedures to reconcile annual financial reports to the underlying accounting data. Views of responsible officials and planned corrective action: Management agrees with this finding and will utilize existing control procedures to reconcile annual financial reports to the underlying accounting data.